JANUARY 2017 – BUILDING PERMITS UPDATE
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ICI permit values in Q3 in the GTA surpassed $2 billion in a single quarter for only the third time ever. 86% of these permits were issued in July and August and there was a significant drop off in September. Compared to Q3 last year, ICI permit values were up 23%. ICI activity in the GTA was driven by the commercial sector which in Q3 accounted for two-thirds of total ICI permits, more than any other region. The GTA`s commercial sector had its best third quarter on record, with permit values increasing by 22% compared to last year.
The GTA`s institutional sector also had a great third quarter. Institutional permit values more than doubled compared to Q3 last year. A major contributor to institutional permitting was St. Michael`s Hospital in Toronto which was issued a $170 million permit for an expansion project. There were several major institutional projects that closed bidding in recent weeks, including three educational projects, each valued at $40 million at Sheridan College, York University, and the Ontario College of Art and Design. A new $45 million courthouse in Brampton closed bidding in December, while a new courthouse in Toronto is up for bid in May 2017. Most significant of all, a $300 million redevelopment project at Mount Sinai Hospital in Toronto will close bidding in late-January. With this and other major hospital projects coming up, GTA’s institutional sector will continue to be strong in the coming years. CMD Group forecasts that hospital starts will increase by 144% in 2017.
The industrial sector is the one point of concern in the GTA. Industrial permit values in the GTA declined 31% compared to last year`s third quarter. This was the second consecutive quarter where the GTA`s industrial sector experienced a significant decline. In Q2 permit values were down 43% year-over-year. The industrial sectors in in the GTA and Central Ontario have both seen significant declines so far this year while the other regions experienced growth.
The GTA Region includes: City of Toronto, City of Oakville, Durham Region, Peel Region, and York Region
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FOR MORE INFORMATION, CONTACT:
Ian Worte
Research Analyst,
ianw@iciconstruction.com
Ontario Construction Secretariat (OCS)
180 Attwell Drive, Suite 360, Toronto, ON M9W 6A9
P 416.620.5210 ext. 241
F 416.620.5310